Darag Group, the legacy acquirer with a focus on the European market, has agreed to sell, subject to regulatory approvals, its North American and Bermuda business entities to the RiverStone Group.

The sale is expected to close by year-end.

The company said the transaction simplified Darag’s operations, allowing the group to focus on its core European business, and brought additional capital to execute its strong pipeline of European transactions, several of which were in advanced stages of negotiation.

Tom Booth, chief executive of Darag, said: “We are pleased to pass this excellent and well-established niche business into the hands of a great company like RiverStone.

“We wish all the best to our North American and Bermuda-based colleagues, several of whom I have had the great pleasure of working with for many years and for whom I have the greatest respect.

“I also look forward to the opportunity this transaction presents to bring focused firepower to our European core. Our strong, well capitalised niche position, and good market conditions, give us great optimism for our European business.”

Bob Sampson, president of RiverStone, said: “We are thrilled to integrate Darag’s North American team into our dynamic fold.

“It will bring additional talent to RiverStone’s highly experienced teams, support our unparalleled reputation, and continue to build on the success we have each created in the legacy and captive insurance markets.

“This acquisition perfectly fits our growth strategy, bolstering our capabilities and significantly boosting our market visibility in several North America insurance segments.

“We’re confident that this transaction will fuel innovation, inspire superior service, and create a powerful synergy that benefits our clients.”

Darag was advised by PJT Partners and Nomura as lead financial advisers, RBC as financial adviser, and Proskauer Rose LLP as legal adviser. RiverStone’s legal advisers were Norton Rose Fulbright US LLP.